Requesting the Joint Committee on Government and Finance to make
a study of the practices, policies, procedures,
administration and management of the West Virginia public
employees insurance agency and its finance board.

Whereas, The public employees insurance agency has
experienced a deficit in fiscal year 1997 of $24.8 million and is
projecting a deficit in fiscal year 1998 of $37 million; and
Whereas, The financial plan adopted by the financial board of
the public employees insurance agency for fiscal year 1999 to
address the said deficits includes an 11.63% premium increase for
state agencies and other participating political subdivisions of
the State, and also raises copayments and deductibles of
policyholders and at the same time reduces reimbursement rates of
providers; and
Whereas, The reductions of rates of reimbursements for
providers under the said financial plan for fiscal year 1999 vary
extensively among the various providers; hospitals will receive
a 5% overall reduction and physician providers will receive a 3%
reduction; however, certain physician providers will receive as much as a 44% reduction in reimbursement rates; and
Whereas, Various managed care organizations who provide
services to approximately 21% of all public employees insurance
policyholders are also significantly increasing their premiums,
and these premium increases vary significantly among the various
managed care organizations; and
Whereas, The Legislature finds that these recent trends and
developments with regard to increasing costs to the state and to
the policyholders of public employees insurance, as well as
reduction in the rates of reimbursement to participating health
care providers indicate a need for a review of policies,
practices, procedures, administration and management of the
public employees insurance agency and its finance board;
therefore, be itResolved by the Legislature of West Virginia:That the Joint Committee on Government and Finance is hereby
requested to appoint a joint interim committee of the Senate and of the House of Delegates, consisting of five members of the
House of Delegates, to be designated by the speaker of the House
of Delegates, and five members of the Senate, to be designated by
the president of the Senate, to study and investigate the
practices, policies, procedures, administration and management of
the public employees insurance agency and its finance board with particular regard to the matters referred to in this resolution;
and, be itFurther Resolved, That the committee shall report to the
Legislature its findings, conclusions and recommendations,
together with drafts of any legislation necessary to effectuate
its recommendations, no later than the first day of January, one
thousand nine hundred ninety-nine; and, be itFurther Resolved, That the expenses necessary to conduct the
study and to prepare appropriate reports, recommendations and
proposed legislation be paid from legislative appropriations to
the Joint Committee on Government and Finance.